Debt Consolidation

There are 2 different types of debt consolidation

1Debt consolidation is when all your
debts are bundled into one loan, say for
instance you have 3 credit cards all
with money owing, you may be better off taking out a personal loan at a lower interest rate and pay
out your credit cards which have a higher interest rate.

Another advantage of debt consolidation loan is you may be able to have the loan
over period that suits you eg: weekly, fortnightly or monthly. This is just one instance of debt
consolidation.

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2 The second type of debt consolidation is a
debt agreement where you can negotiate
with your lenders, this can be when you are having problems like paying debts, are getting phone calls from
creditors and debt collectors, have had vehicles repossessed and left with debt or are facing
bankruptcy. The form below will take you to the experts in this field.

Debt Handling - Debt Consolidation - Pros and Cons

Many people find that over time they have accumulated more debt than they can
repay. When that happens, there is a reinforcing downward spiral. The inability to repay the
debt leads to additional interest charges and penalties, making it still harder to repay the
amount owed.

One common suggestion for breaking this vicious circle is to employ debt
consolidation. For thousands, this has seemed like the way out, the way back to financial
health. But there are pros and cons to debt consolidation, no matter what form it takes. Being
aware of those will help you decide if it is the salvation in your particular
circumstances.

Bad Credit Loans Debt Consolidation

If you need a loan but have bad credit, you may have trouble finding a lender
who will consider loaning to you. If you do find a lender, the loan options that they offer may
be somewhat limited and lacking the best rates. Whether you are seeking a car loan, a home
mortgage, or an instant loan, almost every lender will first check your credit report. Your
credit report is a complete record of your financial history, containing information about your
past and current borrowing, employment, any outstanding debts, and much more. It is impossible
to prevent lenders from accessing this information. Fortunately, there are some lenders and
loan agencies that offer decent loans to individuals with poor credit, if you just know what to
search for.

Look for loan agencies that offer debt consolidation services. Debt consolidation involves
taking out a single loan that will be used to pay off several other loans. The advantages of
debt consolidation may include securing a lower interest rate, a fixed interest rate, or simply
the convenience of having just one loan to deal with. You can either consolidate several
unsecured loans into a new unsecured loan, or you can consolidate them into a new secured loan
against collateral, such as a home. A secured loan with collateral will usually have a lower
interest rate than an unsecured loan, because when the lender has the option of foreclosure, or
selling the collateral if the borrower defaults, they carry less risk.

If a borrower is close to bankruptcy, a debt
consolidation agency may even buy their loans at a discount and pass some of these
savings on to the borrower. Such borrowers should keep in mind that debt consolidation may
prevent them from discharging their debts in bankruptcy in the future, so they should weigh
their decision accordingly. However, for those with bad credit who would rather avoid
bankruptcy, debt consolidation can be an excellent way to get a needed loan while paying off
their debts.

Debt consolidation is also a good choice for individuals with bad credit due to credit card
debt. Credit cards carry high interest rates compared to most other unsecured loans. By
consolidating credit card loans into a single secured loan with a house, car, or other property
as collateral, these individuals can lock in a much lower interest rate. This decreases the
total amount of money owed to the lender, enabling the loan to be paid off more quickly and
incur less interest.

Some loan agencies even offer unsecured short-term or long-term loans to individuals with bad
credit. These lenders may consider borrowers regardless of their credit history, employment
status, or financial situation. Most loan agencies record loan enquiries, which can further
hurt an individual's credit rating, particularly if they decide not to take the offered loan.
However, some agencies forgo the recording of enquiries. Thanks to the internet, potential
borrowers can research and compare the various loan options available to them more quickly and
thoroughly than ever before.

We do our best to make sure the information on this site is up to date. However, all information is presented
without guarantee. When you click on the "apply" you'll have a chance to check out the loan terms and
conditions on the issuer's web site. We don't have any direct connection or legal liability with any Australian
banks. BadCreditLoans.com.au compiles info for a multitude of Australian loan products; please be aware that
this information represents a limited cross section of loans available to Australian consumers. We strongly
recommend that you check with your own financial adviser prior to making a decision on a product based on the info
you've sourced from our website